Prince Harry got some bad news this week as experts spoke out to warn that he could face a “monumental” tax bill unless he takes a break from life in the United States at some point next month.
Daily Mail reported that after stepping down as senior members of the British royal family earlier this year, Harry and his wife Meghan Markle moved into the lavish $18 million mansion of the Hollywood mogul Tyler Perry. It was first reported that they were staying there on May 7, which means Harry has been in the U.S. for at least 151 days. If he gets to 183 days, Harry will be legally liable to pay taxes in this country.
“You can safely assume that someone at the Internal Revenue Service [IRS] is looking very closely at him. This is a big deal,” said prominent Los Angeles tax lawyer David Holtz.
Harry will need to pay both U.S. federal and Californian state taxes under the “substantial presence test,” which requires any foreigner who spends 183 days in this country over the course of three years to pay U.S. taxes on worldwide earnings.
“Harry’s bill could be monumental and could open up a can of worms for the Royal Family because the IRS will want to know all his sources of income,” another tax expert explained. “That’s not just his Netflix deal, but any monies he might have received in gifts from Prince Charles and any trust funds, savings accounts or other assets he has in the UK. That means the Royal books will be open to scrutiny. The US taxman is far more zealous than his UK counterpart.”
Harry and Meghan have sent bought a mansion of their own in Montecito, California, which they purchased through a company registered to the address of Meghan’s business manager, Andrew Meyer.
“If Harry’s been in the US for 183 days straight then he’s done,” Holz said. “But it is safe to assume they have had lawyers and tax experts grinding away on this issue for months.”
“Meghan is a US taxpayer and her situation hasn’t changed, but Harry will have to tell the IRS about every penny he has received,” added another accountant. “That includes paying gift tax on any monetary gifts he received from Prince Charles and he will have to show any other source of income including trust funds set up after the death of Princess Diana.”
This piece originally appeared in UpliftingToday.com and is used by permission.
Read more at UpliftingToday.com:
Sharon Osbourne, 67, Reveals That She And Husband Ozzy, 71, Still Have Sex A ‘Couple Of Times A Week’
Marie Osmond Left ‘The Talk’ Because Of Sharon Osbourne, Source Says
Kim Jong Un Stuns The World By Issuing Rare Apology
The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of Steve Gruber.
Join the Discussion
COMMENTS POLICY: We have no tolerance for messages of violence, racism, vulgarity, obscenity or other such discourteous behavior. Thank you for contributing to a respectful and useful online dialogue.